Intel, the world's biggest manufacturer of computer chips, has significantly revised its sales forecast in light of predictions about the global economy.
Intel has revised its three-month sales forecast and the company has completely withdrawn its full-year predictions, indicating a change to the company's strategy.
The Intel Corporation is a US multinational semiconductor chip maker, formed in 1968. The corporation headquartered are located in Santa Clara, California. Intel is the world's largest and highest valued semiconductor chip maker, based on revenue.
According to Hexus, using predictions about the state of the global economy and, from this, predicted sales of computers by both businesses and personal users, Intel consider that demand for computers is reducing.
Another reason for the projected decline in demand is the increased use of NAND or flash memory chips, which are used in tablet computers and the fall in demand for the RAM chips used in PCs. The NAND type of computer chip is primarily used in memory cards, USB flash drives, solid-state drives, and similar products, for general storage and transfer of data. Intel's core business has traditionally been with RAM chips.
This reflects the trend whereby consumers have been buying fewer desktop and laptop computers and moving towards tablet devices and smartphones.
Forbes note that originally Intel foresaw that it would generate a revenue of up to $14 billion in the third quarter of 2012. The company have since revised this figure to around $13 billion. The company have also issued a statement indicating that their profit margin on each chip sold will be down substantially.